Billionaire mining magnate Andrew Forrest says he will have no qualms about taking the ARU through a costly legal battle, saying the governing body is famous for “bleeding money”.
Forrest’s legal team are in the process of taking out an injunction against the ARU’s decision to axe the Western Force from the Super Rugby competition.
If the Forrest-backed RugbyWA win a right of appeal, they will take the matter to the Supreme Court.
The ARU are already struggling financially, and they could lose hundreds of thousands of dollars if they are defeated in court.
Forrest said he couldn’t fathom how the ARU could axe the Force instead of the Rebels.
The Rebels have reportedly lost about $30 million over their seven-year existence, costing the ARU approximately $17.5 million dollars.
The ARU claim finances were the primary reason behind their decision to axe the Force.
But Forrest says this can’t be true, because he had already told the ARU he would bankroll any potential future losses at the Force.
This means, at worst, the Force would always break even.
Forrest said the ARU’s decision to introduce a team into AFL heartland was doomed from the start.
And he has no qualms about taking the ARU to court in order to achieve the outcome that he believes is the best for Australian rugby.
“I think the ARU has been famous at bleeding money,” Forrest said.
“They’ve been propping up Victoria for so many millions of dollars of losses.
“They’ve had this vain pursuit that they can challenge the AFL in AFL’s heartland.
“That was never going to happen. Melbourne people love the AFL, and I agree with that love – it’s a fantastic sport.
“But our love is for rugby. And to try to impose it upon Victoria was just an ego-driven decision.
“And to not encourage it in WA where the people of this state have a great love for this sport and the Force, is really a retrograde decision against the Force.”
Forrest has called for a complete overhaul of the ARU board.
He choked back tears as he talked about how proud he was to see the groundswell of support the Force has received.
“It just makes me super proud of Western Australia, super proud of my countrymen here,” Forrest said.
“I deeply regret that as an Australian, there’s an administration of a sporting code which has made a really dumb decision.
“But it has empowered West Australians to stand together.”
Gohardaus
Guest
Sorry. I retract my post. I suppose Forrest not being 'so bleeding obvious' was a choice, not an outcome..... Gohard
Gohardaus
Guest
So how come Forrest only got invited loved AFTER the event? Where had he been all along? Love the fact he is aboard, but whose interests does he have at heart?
concerned supporter
Guest
TWAS, As usual you have your head buried in the sand. With the damage done to Rugby by the ARU Board,they have already lost sponsorship from Buildcorp, BMW and Lion NAthan. How will the ARU in 2018 replace those sponsors, or gain new sponsors with their name like mud? It could be the Eve of Destruction for the current ARU Board. But good news for Rugby in general in Australia.
Train Without A Station
Roar Guru
And the potential cost of $3-5M is still less than the $6M they will save.
concerned supporter
Guest
Rubbish TWAS, the ARU need to survive in the short term, (Current Assets, Current Liabilities etc) If you are too lazy to read Item 7 on the ARU Concise Financial Report 2016, I will reproduce it for you and others. ITEM 7 : EVENTS SUBSEQUENT TO REPORTING DATE: (31 December 2016) In the interval between the end of the financial year (31/12/2016) and the date of this report (22/3/2017) No item,transaction or EVENT of a material and unusual nature has ARISEN, in the opinion of the Directors of the Company, to EFFECT SIGNIFICANTLY the operations of the Company, the results of these operations,or the state of affairs of the Company, IN FUTURE FINANCIAL YEARS." Signed 22 March 2017. Cameron Clyne & Bill Pulver. Is this not a Misleading & Deceptive Statement by the ARU Board to its Members (Shareholders) . Note that Rugby WA is a voting member of the ARU. Also note that W. Force Members, players, Coaching Staff and the Australia wide supporters of Rugby would have been misled & deceived by the ARU Board's 22 Mach 2017 statement. In a matter of less than 3 weeks we all are now aware of Cameron Clyne's announcement of culling a team. Wonder whether the ARU Board kept an accurate minute book?
Zulu
Roar Rookie
Still a waste of money when he can't play in his actual position when anointed people are around. More of an enticement to return really, but I'm sure you'll have some ARU sychophant reply with one sided retorts.
Train Without A Station
Roar Guru
They will annual savings. They won't not be realized until later. By 2019 they will be ahead based on your estimates and at no point will they be behind financially it would seem. Seven figures in legal fees isn't going to be magically incurred in January.
Concerned Supporter
Guest
The AUD $3 M to $5 M or more needs to be spent within 6 - 12 months, the supposed savings (if one can reĺyon the ARU, remember their Strategic Plan. will be long term. If you have time read what Clyne & Pulver said on Item 7 on the ARU Directors Report " Events after Balance Sheet Date " 31 December 2016"
Train Without A Station
Roar Guru
$3-5M in legals is less than $6.7M for the next 3 years no? Surely the best option if the balance sheet does not look very strong, as you say.
Concerned Supporter
Guest
TWAS, Thought that you and your mate Roger Davis would be waxing about the demise of the Western Force brought about by C CLYNE and your beloved ARU. Your income figures of $57 M Per annum from Broadcast Revenue are correct.Your SR Expenses seem reasonable. Maybe SR is not that profitable, even for Foxtel, who lost AUD $244 MILLION TO December 2016 But we both know that the ARU 's Balance Sheet 2016 does not look very strong Can they afford AUD $3-5 million in Legals? Very risky. Their financial savior may be Directors Indemnity Insurance. Can you tell me how the ARU are golng to retain or increase their sponsors in 2018?Same with the NSW Waratahs and the Qld Reds
piru
Roar Rookie
Oh it will sell out, don't worry about that. the crowd will be in black though
Train Without A Station
Roar Guru
It seems a no-brainer because you don't consider that a 60kg 12 year old and a 60kg 8 year old are very different.
Frank
Guest
Slightly off topic I know but one thing the ARU/QRU should do is enforce weight-based, not aged-based participation at junior rugby levels. Will stop leakage from the sport at an age of over protective parenting + large inequality of body size at this level. This seems to me to be a no-brainer. Inaction screams ineptness on behalf of our administrators.. Unless I'm missing something? Comments?
Lesley Kelly
Guest
Matt Dustby has never probably been to the West and I hate all these commentators who also have never been here to see our brand of rugby thinking they know everything about it, you don't..Now Matt tell us how long the Tahs and Reds have been in super rugby and how much they have received from the ERU to have achieved only one win and have finished below the Force this year and have actually been dismal in the last few years.Tell us in the West how great Hooper, .Foley, Falau and the rest of them are for all the money they are paid coming 16th and the Reds coming 14th and the Rebels last in the Super Rugby Ladder.? That is why the Wallabies have been hopeless in the last year even losing to Scotland,too many Tahs player.We will never get Bledisloe cup back and we never had it before Force entered Super Rugby so not it is not 5 teams being a problem but overpaid players thinking they are great when they are not.
Train Without A Station
Roar Guru
Because the ARU doesn't hold the licence... And if the VRU have not resolved financial backing, they still will need them to come to the ARU for a bail out to be able to gain the licence... To sell them for a dollar, somebody needed to cover the debt though.
Bakkies
Guest
Forrest was in the background sponsoring players, the team and funding the Force development program that was canned by John O'Neill. 'He’s not a fit and proper person to be owning a sporting club anyway imo.' He doesn't want to own the Force and has no intention to change his mind in the future. Forrest wants it to be owned by the community and was willing to double their commitment from the fan ownership scheme.
Bakkies
Guest
How do you know that they couldn't cut the Rebels after the owner sold it to the pennyless VRU for a dollar last week....
Ralph
Roar Guru
For the NZRU to have "aided and abetted" as you claim the NZRU would have had to: (a). known that it was wrong, and (b). encouraged the ARU in its course of action in that knowledge. Perhaps it might be more accurate to say the NZRU supported ARU's proposal trusting the ARU knew what it was doing.
Train Without A Station
Roar Guru
That doesn't change it. Look at the numbers. Currently we have the best TV Deal ever which delivers around $57M per year. If we are generous and say half of that is attributed to Super Rugby (though I have been told it's actually the tests that drive the value the most) that's $28.5M. Total SR Salaries are $27.5M Total SR Team Grants are $6M. Therefore total SR expenditure is $33.5M against $28.5M income. Blue sky, all 5 teams are propped up by the Wallabies. But anyway it's a ludicrous comment as the only way Forrest could acquire the Brumbies would be if they chose to sell.
Train Without A Station
Roar Guru
No I don't miss the point. Sheek is saying we should just try and kill it everywhere else too...